6 Reasons to Implement Gift Cards In Your Business

Have you been on the lookout for fresh ways to ramp up sales and keep customers coming back for more, in your business?

What if I told you that one key tool exists that could do all of that for you at almost no extra cost?

This illusive tool I’m referring to is none other than, gift cards! Yep that’s right– good ol’ trusty gift cards. In today's day and age, gift cards aren't anything novel or spectacular but year after year they continue to grow in popularity. 

Gift cards, digital and physical cards, are available as just one of the many value added features that can be added into your new or existing payment solutions! The best part is, adding this feature to your business is a breeze when you work with a trusted agent that will do all of the complicated, behind the scenes set-up for you. All you have to do is decide if gift cards are the right next move for your business.  

That’s why in this article, we'll be exploring the 6 reasons why adding gift cards to your business may just be the most underrated and effective strategy in your business, yet.  

Let’s jump right in, shall we?

1. Gift Cards for Every Business Type

Maybe you own a small, local plant shop, you’re a dog groomer, you bake cakes as a part-time gig or you own an established chain of luxury hotels– chances are, you could be offering gift cards to your customers! Whether your business offers products or services, gift cards are a convenient tool that can be a part of just about any B2C (business to consumer) business model. 

2. Increase Profits at Almost Zero Cost

Gift cards are a great way to almost instantly increase revenue with very little effort and minimal cost. They offer you the option to make money upfront without needing to provide products or services until a later time. According to a 2007 Consumer Reports survey, an estimated 6% of gift cards never get redeemed, deeming any unused cards pure profit. In a way it’s almost like receiving a loan for the exchange of a product or service that you may never have to deliver on.

While that profit off an unused gift card is great, the true goal with gift cards is to encourage people to shop with your business. When gift card recipients do use their gifted balance with your business, gift cards have been shown to successfully  encourage customers to spend more than the card's initial value. In fact, Blackhawk Networks 2018 consumer study determined that 59% of consumers surveyed usually spend more than the card's value and Factor4 states that consumers spend, “30-40% more than the value of the gift card at redemption”.

Imagine what it could be like to have an increase in profit every month simply by offering digital and/or physical gift cards to your customers. As a business owner myself, gift cards have felt like an effortless addition that my customers love to buy as gifts. It's a win-win if you ask me!

3. Marketing Done For You

It can be easy to miss but if you think about it, gift cards are an excellent way to grant your business free advertising, ultimately making you a familiar name to new customers. 

When customers purchase and gift your cards to friends and family, they're quite literally endorsing your business to people who trust them. In the world of marketing, a word-of-mouth recommendation is known as one of the most effective ways to acquire new, paying customers. In a Business Study out of Fiserv in 2019, it was found that, “90% of consumers who receive a gift card from a small business they have never visited said they would shop at that business and return there in the future.”

This is incredible news for any business ready to implement gift cards into their repertoire of offerings. Let gift cards do your marketing for you!

4. Loyal, Returning Customers

By offering gift cards, businesses can incentivize customers to make repeat purchases and foster loyalty. The convenience of gift cards makes them a great tool to add a reloadable, loyalty feature for regular customers, creating a solid retention strategy. 

When someone receives a gift card and chooses to redeem the balance at your business, especially if they've never made a purchase before, it presents a valuable opportunity. There is a chance to provide them with a great experience that can leave a lasting impression, potentially influencing their decision to become a regular customer in the future. If they feel inclined, they may even recommend your business to their network of friends and family, extending your word-of-mouth marketing even further.

5. Safe, Secure, Simple

Nowadays, payment processing has come a long way making security measures very advanced. However, there are some aspects of payment that can be more vulnerable to fraud attempts. Gift cards can typically guarantee security for both businesses and consumers. Due to the nature of both digital and physical gift cards, they generally are assigned a serial number or unique card number making them immune to being duplicated or forged. Additionally, gift cards act as a “cash” voucher for a specific amount for a specific business which eliminates the risk of chargebacks, giving you the peace of mind that these transactions are final and secure. 

6. Easy Implementation 

Implementing gift cards into your current payment systems and in your Omni-Channel marketing has never been easier. Working with a payment consultant, like Cardnetix, we ensure that the set-up process is handled by our expert agents making the process nearly effortless providing a smooth customer experience. Thanks to their compatibility with existing systems, enjoy the convenience of effective shareability across all of your business’s marketing (omni-channel) platforms. 

Conclusion

Gift cards truly are so much more than just a simple voucher– they are powerful tools that can be used by nearly any business for driving revenue, enhancing loyalty, and attracting new customers. No matter if you're a small, local business or a corporation, the potential benefit that gift cards offer is limitless. 

I don’t know about you, but gift cards are sounding pretty much undeniably awesome.

 Want to get started but don’t want another thing on your plate to research and figure out? Well, I have some good news for you– At Cardnetix, getting set up is a piece of cake (or pie– whatever you’re into!)

Just reach out to our team to learn more about how our payment gateway and gift card services can benefit your business; we’d love to hear from you! 

At Cardentix, we offer seamlessly integrated gift cards options as a value added feature in our gateway solutions. Whether you’re an established client of ours or just hearing about us, our gift card integrations offer you a cost-effective, efficient, and powerful tool for driving sales. And don’t worry– we do the work for you making this process smooth, quick and easier than ever. If you've been looking for a way to increase your revenue, gift cards may be a great and nearly effortless addition to your business.